Norway’s Yara and Canada’s Enbridge plan to invest up to $2.9 billion to build a low-carbon blue ammonia production plant in Texas, the companies said on Friday.
Unlike green ammonia, which is derived from renewable energy, blue ammonia is produced from natural gas, with carbon dioxide (CO2) as a byproduct captured and stored.
The plant, which will be Yara’s largest, will be built at the Enbridge Ingleside Energy Center near Corpus Christi, Texas, with production slated to start in 2027-28, the companies said.
Yara, which already owns a majority stake in a factory in Freeport along the Gulf Coast, is the latest European company to announce a major investment in the United States.
Although the project was planned long before last year’s US Inflation Reduction Act (IRA), the increase in tax credits associated with carbon storage in that act made it even more attractive, the company said. Norwegian.
Yara also plans to take advantage of low US gas prices, said Magnus Krogh Ankarstrand, president of Yara Clean Ammonia.
“We focused on the US for two reasons: one is the low price of energy, of course, and the other is that carbon capture is accessible at an attractive cost,” he told Reuters.
Fertilizer maker Yara intends to buy all of the plant’s output and supply low-carbon ammonia as a feedstock in its global production system, including Europe, as well as serve new markets for clean ammonia as fuel for ships.
The plant will be able to supply 1.2 to 1.4 million tons of low-carbon ammonia per year.
Approximately 95% of the CO2 generated in the manufacturing process is expected to be captured and transported to permanent geological repositories.
The Oslo-listed firm cut much of its European production last year, citing high energy costs, and currently imports around 1 million tonnes of ammonia into Europe a year.
Source: Terra
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